Ontario gas plant gets bigger

During the provincial Election, the Ontario Liberals promised to stop a gas plant from being built in Mississauga. A gas plant they approved in the first place.  The cancellation of the gas plant likely saved the Liberals a couple seats.

Gas Plant in Mississauga (late Oct 2011)  - CTV Photo

One month after the election and the work continues on the gas plant. McGuinty shrugs and tells us via CTV that stopping the gas plant is not as easy as he thought it would be.  That's hardly surprising, the government signed a contract.

Ontario (you and me) will have to pay compensation if we cancel the project even if we find an alternative location to put it.  Just as we had to pay compensation in the case of the Oakville plant cancelled before this last one was.  In that case I expect we paid upwards of a 100 million dollars to do so.  We don't know because the government refuses to tell us.  Perhaps we are on the hook for even more money in Oakville.

If the government keeps its promise to stop the Mississauga gas plant we will have to compensate for work done today, find a new location, and lost revenue the plant would have made if it were completed.  That's the very least amount of compensation they can expect to pay.

Initially the Mississauga plant was having trouble getting financing.  The government could have at that time said hey, lets move to another location, prior to any construction happening.  They would have to pay some compensation, but likely no where near the amount that will be required now.  The government gambled that the plant would never get the money to be built.  Then they would simply cancel the contract at little or no cost. The government lost the coin toss and you and me will pay big time.

Related: NDP asks AG to review Liberals' gas plant move